The government has secured a €75 million (over Rwf91 billion) loan from French Agency for Development (AFD) to modernise Ruhengeri Referral Hospital.

The concessional loan agreement was signed on Monday, October 30 by Richard Tusabe, Minister of State for National Treasury, and Arthur Germond, AFD's Director in Rwanda.

The referral hospital has also been designated as a second-degree teaching hospital (below a university hospital) by the Ministry of Health.

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Ruhengeri Hospital, located in Musanze District, serves as the reference medical facility for six surrounding districts, anticipating a population growth of 2.1 to 3 million by 2040.

Built in 1939, the hospital has reached its maximum capacity.

This funding will be dedicated to the rehabilitation of the existing facilities and the construction of a new infrastructure onsite.

The rehabilitation plan also includes equipment.

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"The population growth, epidemiological transition, the introduction of universal health coverage, and the surrounding tourism context no longer allow Ruhengeri Referral Hospital to meet all the population’s needs. The AFD funding will support the construction, rehabilitation, and supply of medical equipment. The objective is to provide sustainable access to healthcare for the population of the Northern Province,” said Tusabe.

He said financing is in the form of a concessional loan that will be repaid in 20 years, including a grace period of five years, on an estimated 1% interest rate.

The modernisation initiative will double the hospital’s capacity, expanding from 320 to about 650 beds, establish new diagnostic departments (electrocardiogram, MRI, CT Scan), and intensive care units, and elevate the hospital to international standards, said the Minister of Health, Dr Sabin Nsanzimana.

"Once complete, Ruhengeri Hospital will be the largest hospital if we consider those that are currently in existence,” he noted.

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AFD will also provide a grant of €4 million (approx. Rwf5.1 billion), managed by AFD’s Technical Cooperation Agency, to provide capacity-building and training for the medical staff, particularly in maternal, gynaecological and child health, acute medicine, and infectious diseases, in line with government priorities.

"Health and climate resilience are two essential pillars of AFD’s interventions in Rwanda. Our commitment is to create real, on-the-ground impact, and we’re dedicated to achieving visible results in 2023 for these new initiatives.”

In a promising step, the first cardiologists' training kicked off in Kigali in October 2023, and more practitioners will be trained in Ruhengeri by year’s end.

"It’s an exciting journey, one that holds the promise of enhancing the well-being and resilience of Rwanda’s communities in the face of many future challenges,” said Germond.

The government also signed an agreement securing a €16 million (approx. Rwf20.7 billion) loan to support infrastructure development in 16 rural districts.

While Rwanda has made significant progress in local economic development and governance, many remote districts continue to face funding shortfalls, hindering access to public services and livelihoods for the most vulnerable populations.

The Rwandan government has launched a multi-donor basket fund to address the specific needs of 16 of the country's poorest districts.

AFD’s €16 million contribution to this fund will facilitate the construction of health, education, agriculture, and economic infrastructures. Furthermore, it will enhance the resilience of rural communities to climate change.

The Pro-Poor Basket Fund will establish markets, mini markets and selling points, agriculture infrastructure such as radical terraces, post-harvest facilities, and storage capacities, and also facilitate road construction and rehabilitation among others.

"The signing of these two agreements will play a crucial role in upholding France’s commitment of 500 million euros in cooperation with Rwanda. The rehabilitation of the Ruhengeri Hospital represents a flagship project within the broader framework of our healthcare partnership, reinforcing our shared dedication to the well-being and prosperity of the Rwandan people,” highlighted French Ambassador Antoine Anfré.